Subject: Re: How accurate is Metcalfe's law? (Was: Ximian software)
From: "Stephen J. Turnbull" <stephen@xemacs.org>
Date: 04 Jan 2002 10:34:56 +0900

>>>>> "Perry" == Perry E Metzger <perry@wasabisystems.com> writes:

    Perry> Careful there. As the Chicago and especially Austrian
    Perry> economics schools mention over and over, the only way to
    Perry> assess monetary equivalent value is with what people will
    Perry> pay for something.

True.

    Perry> Net connections are worth whatever people are paying for
    Perry> them (typically pennies an hour), regardless of the value
    Perry> of the information retrieved.

False.  You only ever see the marginal value.  Real Austrians know
better than to reify that as "true value," which is only to be found
at certain hardware stores, and isn't really what you want anyway.  :-)

Cf "consumers' surplus" (and the analogous "producers' surplus") in
any intro economics text.

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